[Congressional Record (Bound Edition), Volume 145 (1999), Part 5]
[House]
[Pages 6168-6169]
[From the U.S. Government Publishing Office, www.gpo.gov]




        THE ADMINISTRATION'S PROPOSAL TO SELL IMF GOLD RESERVES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Nevada (Mr. Gibbons) is recognized for 5 minutes.
  Mr. GIBBONS. Madam Speaker, today I rise to speak against the Clinton 
administration's recent proposal to dump a large portion of the 
International Monetary Fund's gold reserve on the open market, just to 
wipe off the books some of the debt of nations under the Heavily-
Indebted Poor Countries initiative, or HIPC.
  Since Congress must initially approve such a transaction, I rise to 
state my clear opposition to such a sale. This proposal is wrong and 
misguided for at least the following reasons.
  First, the IMF gold sales could harm, yes, harm, the very nations it 
is intended to help. Gold mining is a viable and productive part of the 
economies of well over half of the 41 countries included in the HIPC 
initiative. In 10 of those countries, gold mining accounts for between 
5 and 40 percent of the exports, and in most of the other identified 
and indebted countries that currently do not mine gold, there are 
advanced plans for significant gold development.
  It would be unfortunate and, yes, ironic if potential investment in 
gold mining were deterred by the adverse impact of IMF gold sales on 
the gold price and the economies of this industry.
  Secondly, the sale of IMF gold reserves would further depress the 
gold price in America. The gold price is at its lowest place in 20 
years. Mere discussion of a possible IMF gold sale has already 
depressed the price of gold by more than 3\1/2\ percent in the last 2 
weeks, and outright sale would have a devastating impact on gold 
prices.
  Finally, such goal sales would substantially harm the U.S. gold 
mining industry. Gold is a viable U.S. export commodity that 
substantially benefits

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our balance of trade. The gold industry provides thousands of high-
paying jobs in this country. In Nevada alone more than a thousand 
miners have been laid off due to the already depressed gold prices. A 
further decline would be a serious blow to rural communities in many 
States, including Nevada, and across this country, since many of them 
heavily rely on the stable price and production of this commodity.
  While I understand the motives of those who support the HIPC 
initiative, I do not believe that the sale of IMF gold reserves is the 
best way to be helpful. Gold plays a special and significant role in 
the economies of this country and those around the globe as well, and 
this Congress should not take affirmative actions to adversely impact 
its value.
  Accordingly, I oppose any initiative to sell the IMF gold reserve, 
and strongly urge my colleagues to do the same.

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